Mexico's GDP almost 5%, Mexicans returning to Mexico

[MIRAMAR]

Here's an interesting article on Mexicans leaving the US and going back to Mexico to find work.

http://www.sacbee.com/2011/07/28/3799513/improving-mexican-economy-draws.html

 

[lagrimas85]

Miramar, driving thru central Leon, I saw Home Depot, Office Max, Office Depot, Radio Shack, Auto Zone, Sams Club, Costco, Chili's, Mcdonalds,Burger King,KFC,Starbucks and Walmart They are all setting up in Mexico for something and lots of new small vehicles (almost all with 13" wheels) on the road. The GM plant in Guanajuato is booming, Mazda is building an assembly plant there also, as well as Nissan. Also building is going on everywhere. It is completly reverse of what the economy is in the border towns.

 

[Roberto]

Miramar, driving thru central Leon, I saw Home Depot, Office Max, Office Depot, Radio Shack, Auto Zone, Sams Club, Costco, Chili's, Mcdonalds,Burger King,KFC,Starbucks and Walmart They are all setting up in Mexico for something and lots of new small vehicles (almost all with 13" wheels) on the road. The GM plant in Guanajuato is booming, Mazda is building an assembly plant there also, as well as Nissan. Also building is going on everywhere. It is completly reverse of what the economy is in the border towns.

Lemme sell the house and we'll head down there!

 

[mexicoruss]

A smaller economy can recover faster than a larger one and we are seeing that right now in Mexico

 

[jerry]

Mexico has no wars (expect this stupid drug one) to suck up gnp,the American safety valve (employer of last resort) keeps the need for social services low,the Catholic Church has helped keep the lower classes under control and the birth rate has dropped dramatically.All and all I think they are in a pretty good spot....no debt..no wars...lots of natural resources ...except for the fact the last Mexican scientists worth a crap (the Mayans) predict a pyroclastic cloud of fire is going to kill all of us next year things look pretty good for the average Mexican.

 

[moore_rb]

Several excellent points Jerry (I won't comment on the Mayan prophecy ), Here are a couple more major differences between Mexico and the current state of the US:

1) Mexico is a net exporter (of more stuff than just dope ); while the US is a net importer in nearly all categories - Currently, due to the quantitiative easing (money printing) activities of the FED, the US' number one export are Dollars, debt and inflation.

2) Using current market market prices, Mexico's resource production output (Oil, and metals mainly) exceeds their cumulative circulating money supply (what we call M3 in the US), while the cost of mexican labor is still pretty much the cheapest in the second world. - This means that real incomes in the mexican economy are rising. Combine that with initiatives like Hugo Salinas Price pushing to return Mexico to a Silver-backed Peso, and the value of Mexican money looks to be on pretty solid ground- watch those dollar exchange rates over the next few years.


While these are all definitely favorable trends for Mexico, the big ? to me is education. Can the Mexican economy grow it's service sector fast enough to maintain a balance between production (where Mexico's advantage comes from that preponderance of cheap labor) and administration/management (where higher education and greater technical expertise is necessary)

 

[lagrimas85]

Lemme sell the house and we'll head down there!

Roberto, my other post was about the mummies of Guanajuato, not the Mommies, you would need to kept on a leash. I would like to go there with you though. Actually i can't wait to go with you.